Exclusive: China’s Huawei Technologies, which for years denied violating American trade sanctions on Iran, produced internal company records — reviewed by Reuters — that show it was directly involved in sending prohibited U.S. computer equipment to Iran
LONDON - China’s Huawei Technologies, which for years has denied violating American trade sanctions on Iran, produced internal company records in 2010 that show it was directly involved in sending prohibited U.S. computer equipment to Iran’s largest mobile-phone operator.
The United States is trying to persuade allies to avoid using Huawei equipment in their next-generation mobile telecommunications systems, known as 5G. Separately, U.S. authorities are battling Huawei on a legal front. “Huawei could thus attempt to claim ignorance with respect to any illegal act committed by Skycom on behalf of Huawei, including violations of” U.S. sanctions laws, the indictment states. Skycom, which Huawei has described as a local business partner in Iran, is named as a defendant. Records in Hong Kong, where Skycom was registered, show the firm was liquidated in June 2017.
MCI’s parent company is Telecommunication Co of Iran. At the time, TCI was controlled by a consortium whose largest stakeholder was a company controlled by the elite Islamic Revolutionary Guard Corps. Another stakeholder was Setad, an organization controlled by Supreme Leader Ayatollah Ali Khamenei. But the newly obtained documents - more than 100 additional pages related to the project - show that Huawei was involved in sending at least some of that U.S. equipment to Iran. The documents are variously written in English, Chinese and Farsi.
The packing lists, which include some prohibited HP equipment, provided extensive details of 340 shipping cases, such as weights and sizes, with ultimate destinations in the major Iranian cities of Tehran, Shiraz and Mashhad. The records include a signed equipment contract between MCI and Panda International that included more than $10 million worth of equipment for the billing system project, although it doesn’t specify all of the gear. According to the contract, which references an invoice from September 2010, MCI was to pay Panda International through China Construction Bank’s branch in the city of Shenzhen – the location of Huawei’s headquarters.
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